Crypto inheritance and self-custody: a practical guide for heirs and family.

Why Crypto Inheritance is a Technical (Not Just “Family”) Matter

Self-custody is powerful because it doesn’t depend on third parties. But precisely because of this, if no one knows how to access the funds, the risk is that they become irrecoverable. Planning for inheritance doesn’s mean “sharing the seed phrase with everyone”: it means creating a system that works in emergencies, without increasing the risk today.

1) The Goals of an Inheritance Plan

Access possible for heirs in case of need.
Reduced risk of theft in the present.
Instructions understandable by non-technical people.
Reduced number of decisions to be made under stress.

2) The Main Problem: “Knowing What to Do”

Many plans fail because they are incomplete. Heirs must be able to answer concrete questions:

Where are the backups?
Which wallet to use?
Is a passphrase needed?
How to avoid scams during recovery?
How to convert to fiat safely (if necessary)?

3) Three Practical Models (From Simplest to Most Robust)

Model A: Cold Wallet + Instructions + Backup in Two Locations

Seed phrase on physical media.
Two copies in separate locations.
Document with operating instructions (no links, no online credentials).

Model B: Separate Passphrase

Seed phrase and passphrase in different locations. If one of the two elements is stolen, the attacker cannot reconstruct the main wallet.

Model C: Multisig 2-of-3

Ideal for large amounts of capital: requires two out of three devices/keys to move funds. You can distribute the keys between yourself, a trusted person, and a secure location. The cost is complexity: it requires documentation and periodic testing.

4) The Document You Really Need (One Page, Not a Novel)

Write a simple, printed document with:

List of main assets (without mandatory amounts).
Where the backups are located (physical description, not “in the drawer”).
Steps to restore the wallet.
Anti-scam rules: no assistance in DMs, no links from ads, no “help” from unverified sources.

Goal: reduce ambiguities. In an emergency, clarity is security.

5) Periodic Testing: Recovery is Not Optional

At least once a year, perform a controlled test:

Restore from seed phrase (and passphrase if present).
Verify that the addresses match.
Document any changes (new wallet, new backup method).

6) What to Avoid

Seed phrase in the cloud or in a photo.
A single “well-hidden” copy.
Explanations based on websites or links that may no longer exist.
Relying on memory for passphrases or procedures.

Conclusion

A good crypto inheritance plan is a project: simple, tested, and documented. You don’t need to complicate things right away: even a basic model, well-executed, drastically reduces the risk of irreversible loss.